Tax season can be stressful for cannabis businesses due to the extra regulatory limits placed on them by IRS Code 280E. To help ease some of that stress, Rebel Rock CFO and Co-founder Melissa Diaz shared a few tips for cannabis operators to keep in mind when preparing their taxes in a recent article for Green Entrepreneur.
In addition to some quick background on the history of 280E, Melissa emphasizes the importance of carefully tracking deductions that comply with the strict limitations of the tax statute including properly accounting for precise square footage and employee classifications that directly contribute to the cost of goods sold. She also underscores strong record keeping, which can help cannabis businesses maximize their deductions and defend themselves in the event of an IRS audit.
Preparing tax filings for cannabis businesses can be complex. But we can help. The professionals at Rebel Rock are intimately familiar with the intricacies of 280E and can navigate your business through tax season and beyond. Learn more about our full slate of services including taxes.